Northeast Bancorp (NASDAQ:NBN) Announces Earnings Results

Posted by Brian Himes on Jul 29th, 2026

Northeast Bancorp (NASDAQ:NBN – Get Free Report) posted its earnings results on Monday. The financial services provider reported $4.05 EPS for the quarter, topping analysts’ consensus estimates of $3.40 by $0.65, Zacks reports. The company had revenue of $65.24 million for the quarter, compared to the consensus estimate of $67.21 million. Northeast Bancorp had a return on equity of 19.94% and a net margin of 27.91%.

Here are the key takeaways from Northeast Bancorp’s conference call:

Record profitability and balance-sheet growth: Fiscal 2026 net income rose 29% to $107.5 million, while diluted EPS reached $12.74 and tangible book value per share increased 22% to $70.58. Total loans, including loans held for sale, grew 21% year over year to $4.59 billion.
National lending momentum remains strong: Quarterly originations reached a third consecutive record of $257 million, contributing to approximately 27% year-over-year growth in the originated portfolio. Management said the pipeline remains active and expects continued growth without compromising credit quality.
Credit metrics improved: Non-performing assets declined to 67 basis points from 78 basis points, past-due loans fell to 54 basis points from 64 basis points, and several individually reserved purchased loans were resolved without significant charge-offs.
Margins remain elevated but may stabilize: Net interest margin was 4.8%, supported by strong purchased-loan returns, though it declined from 5.15% in the prior quarter. Management expects underlying margins to remain relatively steady, with limited additional funding-cost relief and some brokered-CD repricing pressure.
Insured small-business lending faces execution challenges: The bank slowed originations after failing to secure attractive sale pricing and increased insurance protection to 25% while retaining more loans on balance sheet. Management said the product could generate substantial volume if sales become economical, but acknowledged it does not want to hold hundreds of millions of dollars of these assets.

Northeast Bancorp Trading Down 5.0%

Northeast Bancorp stock opened at $126.46 on Wednesday. Northeast Bancorp has a 52 week low of $80.75 and a 52 week high of $142.31. The stock has a market cap of $1.04 billion, a PE ratio of 9.94 and a beta of 0.58. The stock has a 50-day moving average price of $128.11 and a 200 day moving average price of $120.62. The company has a current ratio of 1.13, a quick ratio of 1.10 and a debt-to-equity ratio of 0.03.

Northeast Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Monday, August 10th will be given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. The ex-dividend date is Monday, August 10th. Northeast Bancorp’s dividend payout ratio (DPR) is currently 0.34%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on NBN. Keefe, Bruyette & Woods raised their price target on Northeast Bancorp from $128.00 to $136.00 and gave the company a “market perform” rating in a research report on Tuesday. Wall Street Zen cut shares of Northeast Bancorp from a “buy” rating to a “hold” rating in a research note on Sunday, May 24th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Northeast Bancorp in a report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $134.50.

Read Our Latest Analysis on NBN

Northeast Bancorp News Summary

Here are the key news stories impacting Northeast Bancorp this week:

Positive Sentiment: Quarterly earnings substantially exceeded expectations. Northeast Bancorp reported fiscal Q4 net income of $34.3 million, or $4.05 per diluted share, up from $3.00 a year earlier and above the $3.40 analyst consensus. Fiscal-year net income rose to $107.5 million, or $12.74 per share, from $83.4 million, or $10.08 per share. Northeast Bank Reports Fourth Quarter Results and Declares Dividend
Positive Sentiment: Loan growth and balance-sheet capacity remain key growth drivers. Management highlighted approximately $1.5 billion in additional loan capacity, while investors received a favorable outlook for continued lending activity. The bank also indicated a fiscal 2027 tax rate of roughly 28% to 29%. Northeast Bank signals FY 2027 tax rate and loan capacity
Positive Sentiment: Operating performance and credit quality were strong. Reports emphasized record annual earnings, a roughly 36% efficiency ratio, strong return on equity, and nonperforming assets of about 0.67%, supporting the case for continued profitability. Northeast Bank: Incredibly Efficient, Priced For Perfection
Neutral Sentiment: Keefe, Bruyette & Woods raised its price target from $128 to $136 but maintained a “market perform” rating. The higher target implies potential appreciation from the quoted trading level, although the unchanged rating signals limited conviction for significant near-term outperformance.
Neutral Sentiment: Northeast Bancorp declared a quarterly dividend of $0.01 per share, payable August 24 to shareholders of record August 10. The payout provides a small shareholder return but is not a major valuation catalyst.
Negative Sentiment: Revenue missed expectations. Quarterly revenue was $65.24 million versus the $67.21 million consensus, which may be tempering the market’s reaction to the large EPS beat.
Negative Sentiment: Valuation leaves little room for disappointment. Commentary noted that NBN trades at a historically high premium to tangible book value and may be “priced for perfection,” increasing downside sensitivity if loan growth, margins, or credit quality weaken.

Institutional Investors Weigh In On Northeast Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Boston Partners raised its position in shares of Northeast Bancorp by 0.4% in the third quarter. Boston Partners now owns 271,711 shares of the financial services provider’s stock valued at $27,018,000 after buying an additional 1,029 shares during the last quarter. GW&K Investment Management LLC boosted its position in Northeast Bancorp by 7.6% during the fourth quarter. GW&K Investment Management LLC now owns 172,575 shares of the financial services provider’s stock worth $17,936,000 after acquiring an additional 12,224 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its stake in Northeast Bancorp by 237.8% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 125,851 shares of the financial services provider’s stock worth $12,605,000 after acquiring an additional 88,592 shares during the period. Invesco Ltd. grew its stake in Northeast Bancorp by 22.2% in the 3rd quarter. Invesco Ltd. now owns 77,833 shares of the financial services provider’s stock worth $7,796,000 after acquiring an additional 14,127 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in Northeast Bancorp by 12.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 68,362 shares of the financial services provider’s stock valued at $6,258,000 after acquiring an additional 7,579 shares during the last quarter.

About Northeast Bancorp

(Get Free Report)

Northeast Bancorp is a Maine-based bank holding company and the parent of Northeast Bank, a state‐chartered commercial bank headquartered in Lewiston, Maine. Through its subsidiary, the company provides a variety of financial services, including personal checking and savings accounts, residential mortgage lending, small business and commercial loans, treasury management and private banking services. The bank operates a branch network spanning central and southern Maine, serving individuals, families and local businesses across the region.

Founded in 1872 as Androscoggin County Savings Bank, the institution has evolved through mutual and stock conversions, adopting the Northeast Bank name in 2001 and forming Northeast Bancorp as its mutual holding company in 2013.